5 Reasons Staff Loyalty Equals Success

Lynda Gratton, a workplace expert, proclaimed that workplace loyalty was dead. In a quote in The Financial Times, she said that loyalty had been “killed off through shortening contracts, outsourcing, automation, and multiple careers.”  That seems very grim, but is it true?  In a world of ever-changing technology and continued pressure to improve the bottom line, is there room for some good old-fashioned loyalty?  And how important is staff loyalty to your company?

Contrary to popular belief, #loyalty in employees actually improves your bottom line! Click To Tweet  

According to the 2019 Job Openings and Labor Turnover Survey (JOLTS) from the Bureau of Labor Statistics (BLS), over 3.5 million Americans quit their jobs every month or about 2.3 percent of the labor force. Analysts have always claimed employees looking for higher salaries were the driving force behind this trend. But according to LinkedIn’s 2019 Workforce Learning Report, 94 percent of employees say that they would stay at a company longer if it simply invested in helping them learn.  In other words, employees are more likely to invest in a company that they feel has invested in them.

5 reasons staff loyalty is a key factor in the success of a company:  

  1. Staff loyalty creates loyal customers.  Why does customer loyalty matter?  It boosts profits. When an employee is happy and confident with the job they are doing it directly affects the way they interact with clients and the client’s overall satisfaction with your company. Studies show business profits go up by 25% to 95% when customer retention rates are increased by only 5%.
  2. Staff loyalty improves your company’s image and reputation.  While most people agree that loyal customers are the backbone of a good sales structure, it is actually your employees who can do the most good or the most damage to your reputation.  Sites like Glassdoor and Indeed are filled with both positive and negative comments about pay structure, benefits, and company culture. Aside from things they may directly say about your company, loyal employees are also able and eager to manage your business well.  A well-managed business is key to client satisfaction.  Unsatisfied employees often ignore customer contact and complaints which can start a spiral of bad reviews on social media and review sites, and recovering the damage will cost time and money. 
  3. Staff Loyalty lowers turnover and can help recruit new employees  According to data drawn from 30 case studies taken from 11 research papers on the costs of employee turnover, it costs at least 20% of their salary when an employee leaves. These costs reflect the loss of productivity from the departure, the cost of finding a replacement, and the reduced productivity while the new employee gets up to speed.  As other potential employees hear about the company from loyal employees they are more likely to seek out a position and your employee is in a better position to give referrals.
  4. Staff Loyalty can help with your growth plans According to Entepeneuer.com when you promote from within, you bring up someone who embodies the DNA of the company and you avoid the friction of ramping up someone from the outside. Promoting from within also shows how the company is growing and leveraging that growth into an opportunity for its current employees.
  5. Staff Loyalty makes the company culture warm, engaging, and fun.  Last, never underestimate the power of company culture. People spend the majority of their time at work, so why not have work be a place that reflects a warm and positive culture.  One of the greatest advantages of a strong and warm company l culture is that it has the power to turn employees into advocates.  Employees want more than a steady paycheck and good benefits; they want to feel like what they do matters. And when your people feel like they matter, they’re more likely to become culture advocates—that is, people who not only contribute to your organization’s culture but also promote it and live it internally and externally.

The loyalty of your employees directly impacts your company’s reputation along with the bottom line.  When an employee is engaged and motivated, they work harder and produce better results.  Their customers are happier.  When customers are happy, they spend more money.  When they spend more money, your bottom line improves.  

A loyal employee is not easily convinced to leave your company for the competition.  This means that any resource you use to train and reward your team is a better investment.  As your company culture improves employees are less likely to miss work or avoid the office.  Most importantly, they become advocates of your company to potential employees and customers alike.  

Curious if you’re leading in a way that inspires loyalty? Take our free leadership style quiz:


Jamie Quickert
Passionate about people and outstanding customer experiences, Jamie helps our clients uncover the ways to best surprise and delight their customers.

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